Google AdWords: Terms to Know

Google AdWords is rich in jargon and insider language. You may find that it's helpful to have a ready list of common AdWords terms at your fingertips.

ad position: The placement of an ad on the Google search results pages. Position #1 is at the top of the first page.

bid price: The maximum amount of money an advertiser is willing to pay for a click from a given keyword.

call to action: Directions within an ad or a web page for the reader to take an action.

Campaign cloning: A process we developed for the purpose of testing under controlled circumstances that yield the highest odds of success before cloning those testing efforts into more speculative areas of AdWords.

conversion: A desirable action by a website visitor, including joining a mailing list, buying a product, calling a phone number, or downloading a file.

CPC (cost per click): The amount an advertiser is charged for a single click. Different keywords cost different amounts, depending on competition.

CTR (click-through rate): The number of clicks an ad receives divided by the number of impressions. The higher the CTR, the more effective Google considers the ad.

Display network: Websites, forums, or blogs that aren't owned by Google, but have Google AdWords ads (also known as Adsense ads) on them.

impression: The display of an ad on a web page.

Interruption Marketing: A term we refer to when discussing the Display network and the fact that someone wasn't actually looking for a solution to a problem, but might be reading about something related to the problem or solution that is being advertised.

landing page: The first webpage shown after an ad is clicked. The page is constructed to appeal to the same desire as the ad.

Permission Marketing: A term we regularly refer to when discussing the Search network, and the fact that someone is actively searching for a solution to a problem.

PPC (pay per click): The advertising model that charges advertisers only when their specific ads are clicked.

split test: Test that divides online traffic randomly between two or more creative approaches (ad, website, e-mail, and so on) and measures which one generates more conversions.

Search network: The online network people go to when searching for a solution to a problem they're having.

traffic: The number of visitors to your website.

visitor value: How much money, on average, a single visitor to your website is worth.